Dark pool operator Liquidnet recorded its highest month of activity in the Asia-Pacific region in August, with over US$1.1 billion of principal traded by its members on the platform.
This is the firm time Liquidnet has released trading statistics for its Asian unit since it launched in the region on 29 November 2007. The platform now trades equities listed in Hong Kong, Singapore, Korea, Japan and, since February this year, Australia.
“These record results clearly show there continues to be rising demand in Asia for alternative execution venues like Liquidnet,” said Lee Porter, managing director of Liquidnet Asia, in a statement. “We remain confident about the region’s enormous growth opportunities, and our ability to deliver the strategies to support this growth.”
Since its launch in the region, Liquidnet’s 154 predominantly buy-side members have transacted US$11 billion of Asian equities on the platform, with an average order size of US$1 million.
“Institutional investors in Asia, who previously had limited options in finding alternative liquidity sources, now have access to trading venues like Liquidnet that cater to their increasing needs,” added Porter.
Dark pools are still finding their feet in Asia. According to consultancy firm Aite Group, they currently account for less than 5% of share trading in the continent. However, Aite expects dark pools’ market share to rise to 20% of the total equities value traded in Asia by 2012.